Retail sales growth hits year high

The consumer price index, which measures the cost of a fixed basket of goods and services, rose 0.9 per cent year-on-year in August. This was the seventh consecutive increase and followed a 0.5 per cent rise in July. The main source of the increase was a 2.2 per cent rise in food prices, after a 1 per cent increase in July. Housing also contributed, with rents up 3.3 per cent, and water, electricity and gas rising 6 per cent.

Retail sales also rose in August at their fastest pace for seven months – 9.9 per cent higher than in the same month last year. Bloomberg commented that people were spending more on restaurant meals and holidays after a combination of disease, heatwaves and floods had kept them at home earlier in the summer.